CPC Corporation, Taiwan announced today that they have received another carbon neutral1 Liquefied Natural Gas (LNG) cargo from Shell.
The cargo, which was delivered at the Yung-An LNG Receiving Terminal, will provide enough carbon neutral LNG to power over 100,000 homes for a full-year.
An average LNG cargo of about 70,000 tonnes would emit approximately 240,000 tonnes of CO2e across the value chain. Nature-based carbon credits have been used to offset all emissions generated – from exploring for and producing the natural gas, to use by the final consumer (all scopes2). Credits used for this deal are bought from Shell’s global portfolio of nature-based projects, including the Ghana Afforestation Project, Katingan Peatland Restoration and Conservation Project in Indonesia and Cordillera Azul National Park Project in Peru. Nature-based projects protect, transform or restore land and enable nature to add oxygen and absorb more CO2 emissions from the atmosphere.Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of CO2.
Steve Hill, Executive Vice President Shell Energy stated, “We are delighted to be delivering our second carbon neutral LNG cargo to CPC Corporation, Taiwan. It is great to see the increasing demand for carbon-neutral LNG across the industry. We are grateful to our trusted partner CPC Corporation, Taiwan for their support in developing the market for carbon neutral gas. For gas and LNG to play their full role in the energy transition, the industry needs to take action today. Using nature-based carbon credits to compensate for emissions that cannot be avoided or reduced, is an important step as we find more ways to reduce emissions across the LNG value chain.”
1 The terms “carbon neutral”, “carbon off-set” or “carbon off-set compensation” indicate that Shell has engaged in a transaction to ensure that an amount of carbon dioxide equivalent to that associated with the production, delivery and usage of the fuel has been removed from the atmosphere through a nature-based process or emissions saved through avoided deforestation. Further information on Shell’s Net Carbon Footprint ambition and investments in natural ecosystems.
2 Shell uses the DEFRA (UK Dept. for Environment, Food and Rural Affairs) conversion rates to calculate LNG emissions needed to be offset for Scope 1, 2 and 3. According to 2019 DEFRA*conversion rate,1 tonne of LNG emits approximately 3.4 tonnes of CO2e across the value chain including end use. End use refers to combustion which comprises ~2.55 tonnes of the total 3.4 tonnes of Well to Wheel emissions. The remaining emissions of 0.85 tonnes are across the value chain from exploration and production to transportation and regasification.